Why Tenant's Insurance is so Important
Tenant’s insurance is required for all Old Oak residents. So why is it necessary?
You insure your car and your life but, if you’re like many apartment dwellers, renter’s insurance seems like a waste of money. That is until you lose your personal possessions due to a fire, flood or theft. Only when you have to start replacing clothes, furniture, electronics, small appliances and more do you realize how much money you had invested in your “stuff”. Doesn’t it make sense to protect yourself against that kind of loss when, in most cases, you can do it for less than the cost of a cup of coffee a day?
To determine how much renter’s insurance you need, make a list of everything you own and determine how much it would cost to replace each item. For clothes, be specific about the expensive things like suits, but for the other items, just count them and assign an average value like $25 or $30. Now itemize and place a value on electronics, appliances, dishes, art work, furniture and so on. When finished, add up the values and maybe add about 10% because we all tend to underestimate the cost of replacement. That number is the amount of insurance you should have. Be sure to get a policy that provides replacement cost coverage and not actual cash value.
Explore other options that might be available. For example, if you have a storage locker full of expensive gear like bikes, camping equipment and so on, make sure coverage extends to those items you own that aren’t actually in your apartment but are still your possessions in the apartment building.
Old Oak Properties requires that all tenants also keep liability Insurance coverage in place at all times to cover the possibility of being sued by other tenants, the property owners, or by someone injured while in your apartment.
A renter’s insurance policy can also help cover extra living expenses such as temporary lodgings, dining out and transportation that you might incur should your apartment be damaged by fire or other covered cause. These costs can mount up very quickly if it’s going to be a while before you can return to your apartment.
If you already have car insurance and even life insurance, consider looking for an insurance company willing to package all your insurance needs together and give you a premium discount.
When you consider all the advantages, benefits and added security that a renter’s insurance policy can deliver, there is really no reason not to have it. It’s a small price to pay for a whole lotta peace of mind.
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